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It's time for a tweet thread from my comprehensive new report - "The Truth About U.S. Inequality": explainingcapitalism.org/truth-about-in… 
Rising economic inequality and how to address it has been one of the most important issues in the United States since the Great Recession ended in 2009. The majority of America’s wealth is concentrated in the hands of a minority of the population:
explainingcapitalism.org/truth-about-in…
explainingcapitalism.org/truth-about-in…
Since the early-1980s, the wealthiest 1% of families have significantly increased their share of America’s wealth, while the bottom 90% of families have experienced a decrease of their share of the country’s wealth: explainingcapitalism.org/truth-about-in…
The left wants you to believe that wealth inequality is an inevitable feature of capitalism and that socialism is the only solution. They are flat-out wrong.
Our growing inequality is the fault of the Fed and the debasement of the paper U.S. dollar.
Our growing inequality is the fault of the Fed and the debasement of the paper U.S. dollar.
The value and integrity of the U.S. dollar has been significantly eroded since the Fed was founded in 1913, which caused the cost of living to soar (i.e., inflation).
Inflation hurts the poor and middle class, but actually helps the rich:
explainingcapitalism.org/truth-about-in…
Inflation hurts the poor and middle class, but actually helps the rich:
explainingcapitalism.org/truth-about-in…
The Fed has been a terrible steward of the U.S. dollar as the currency has lost over 96% of its value on its watch from 1913 to 2018.
An item that cost $1 in 1913 would have cost $25.36 in 2018.
explainingcapitalism.org/truth-about-in…
An item that cost $1 in 1913 would have cost $25.36 in 2018.
explainingcapitalism.org/truth-about-in…
The dollar’s conversion to a pure, unbacked fiat currency in 1971 set the stage for a veritable explosion of both private and public debt in the United States. Before 1971, the U.S. dollar’s gold backing prevented unchecked expansion of the money supply.
explainingcapitalism.org/truth-about-in…
explainingcapitalism.org/truth-about-in…
The credit bubble that began in the early-1980s (a direct result of the dollar becoming a fiat currency) also helped to create a long-term bubble in the stock market.
That stock market bubble primarily benefited the rich vs. the poor & middle class:
explainingcapitalism.org/truth-about-in…
That stock market bubble primarily benefited the rich vs. the poor & middle class:
explainingcapitalism.org/truth-about-in…
The dollar's conversion into a fiat currency led to a massive multi-decade bubble in U.S. household wealth since the early-1980s.
The rich own the largest share of household wealth, so their fortunes have ballooned along with the wealth bubble.
explainingcapitalism.org/truth-about-in…
The rich own the largest share of household wealth, so their fortunes have ballooned along with the wealth bubble.
explainingcapitalism.org/truth-about-in…
But what happens to bubbles? They burst! And the current household wealth bubble will prove to be no different.
Virtually all leftist warnings about U.S. economic inequality implicitly assume that U.S. wealth has reached a “permanently high plateau.”
Virtually all leftist warnings about U.S. economic inequality implicitly assume that U.S. wealth has reached a “permanently high plateau.”
Notice how U.S. wealth inequality started to grow in the early-1980s? That's a direct result of the household wealth bubble that started at that time, which was a side-effect of the dollar's conversion into a pure fiat currency.
explainingcapitalism.org/truth-about-in…
explainingcapitalism.org/truth-about-in…
As our long-term credit and asset bubble grew, so did the wealthiest 1% of families’ share of total U.S. wealth. That is not a coincidence, folks - I can assure you.
That is the fault of the fiat dollar - NOT capitalism.
explainingcapitalism.org/truth-about-in…
That is the fault of the fiat dollar - NOT capitalism.
explainingcapitalism.org/truth-about-in…
Why has the CEO-to-worker compensation ratio soared so much? The long-term stock market bubble! Also, note how it rose and fell with the dot-com bubble, housing bubble, and now the ZIRP/QE bubble. It's going to fall for good when this bubble bursts...
explainingcapitalism.org/truth-about-in…
explainingcapitalism.org/truth-about-in…
To summarize, the ONLY way to solve our economic inequality is to strike at the root: we need to end the Fed, make the U.S. dollar sound again by backing it with gold, allow and embrace free markets, and significantly scale back the government.
Also, we need to spend much more time worrying about our wealth bubble and the economic crisis that will occur when it bursts, rather than the temporary wealth inequality that it has created.
